But since bitcoins have no intrinsic value, the material wealth of China would not change. There would be still the same amount of food and cars in the Chinese market, and the same amount of Yuan in circulation inside China.
Intrinsic value is meaningless in terms of price. Air has intrinsic value. We need it to breath, yet it has no price. Dollars have no intrinsic value, but we use them because they are the most liquid commodity for trade. The reason why dollars are the most liquid commodity for trade is irrelevant. If there was another reason, that reason would suffice. If there was no other reason, something else would be money.
Like gold, bitcoin is recognizable, portable, divisible fungible and scarce. it can be used as a medium of exchange. These properties make it valuable to some people. The fact that it is valuable to some people make it valuable to other people. Intrinsic value is not a useful concept if you want to understand money. It is a harmful distraction.